Commercial auto insurance provides business owners peace of mind with regards to liability from the driving practices of employees, not to mention comprehensive policies that protect against vandalism, theft, and natural disasters. The need for commercial insurance is facilitated by the simple fact that a citizen would certainly have cause for complaint if a pizza delivery driver plowed into his or her car in a smattering of pepperoni and glass. And as any lawyer will wildly quote, victims always go after the deepest pockets—which probably will not be the driver, unless they want video game tokens. Commercial insurance, much like regular insurance, provides security in case of personally injury or property damages incurred through the fault of the insured driver. And just as with regular auto insurance, employers considering commercial insurance must ponder the exact specifics of coverage needed to adequately protect their business.
Liability
Liability is always the absolute, foundational facet of any form of auto insurance. Liability insurance maintains that, when the driver is at fault, his or her insurance provider will pay for personal injury and property damages visited upon third parties (after the deductible is paid, of course). Employers allowing employees to use business-related vehicles without liability insurance are, in essence, playing chicken with their livelihood. For instance: Let’s say you own a dry cleaning establishment that delivers. If one of your drivers were to suddenly day-dream and accidentally rear-end somebody (while driving without appropriate coverage) causing damages and serious injuries, you could end up being taken to the proverbial cleaners. Liability coverage for commercial insurance is the bare minimum—a wholly necessary bare minimum.
Comprehensive
Employers are chiefly interested in protecting against personal injuries (including their employee) and property damages. The employee’s car is rarely considered for coverage, simply because the employee, by state decree, must already hold auto insurance of some kind. But many personal auto insurance providers void policies where consumers utilize their vehicle primarily for business. In this case, many employers find it their duty to secure comprehensive commercial insurance. In the case of theft (imagine an entire truckload of supplies purloined from a company car), vandalism, natural disaster, or fire comprehensive commercial insurance replaces damaged or lost property. Additionally, comprehensive insurance protects vehicles owned by employees—but used primarily for business purposes—from theft or collision. These types of policies are sometimes called non-owned liability plans.
Commercial auto insurance is not just about protecting your business (although that is immeasurably important). It additionally protects employees and the public at large from business-related accidents. As more and more businesses take to the streets, the public needs assurances that, if a tragedy were to take place, all parties would be properly insured. Whether a business selects liability or comprehensive auto insurance, some sort of coverage is necessary. Plenty of online resources subsist that offer insurance quotes for businesses (some will even solicit competing bids from different providers). Imagine all the time, money, energy, and determination owners routinely invest in their businesses. Take a fraction of that and invest it in finding and securing adequate auto insurance, because, after that, you needn’t worry about me working for you.
By Jean-Pierre Lacrampe